Education costs are climbing

We know that many students have to borrow in order to attend college. On top of that, the interest rates on many new federal student loans doubled on July 1 from 3.4 percent to 6.8 percent.

Michelle Singletary

We know that many students have to borrow in order to attend college. On top of that, the interest rates on many new federal student loans doubled on July 1 from 3.4 percent to 6.8 percent.

There are congressional efforts to lower the rates. But regardless of whether congressional Republicans and Democrats find a compromise on the student loan interest rate, the bigger issue is curbing the cost of college so that interest rates don't matter as much. This is particularly important, since a large number of students borrow and then don't finish college.

Just a little more than 50 percent of those who enter college leave with a bachelor's degree, notes Jeffrey J. Selingo, editor at large for The Chronicle of Higher Education.

Selingo has written a compelling book looking at the state of higher education. "College (Un)bound: The Future of Higher Education and What it Means for Students" (Amazon Publishing/New Harvest, $26) is the July Color of Money Book Club selection.

"American higher education is broken," Selingo writes. "Like another American icon - the auto industry in Detroit - the higher-education industry is beset by hubris, opposition to change, and resistance to accountability."

Selingo takes the approach that we can't move forward without looking back. He talks about how we arrived at colleges becoming similar to corporations - with administrative salaries ballooning - to the great credential race in which colleges and universities created an "almost insatiable demand for college credentials" by people looking to gain a competitive advantage in the job market.

"For the unemployed or those stuck in dead-end jobs, the constant barrage of advertisements by colleges seems to offer a way to stand out in a pile of job applicants," Selingo writes. "The bachelor's degree, the symbol of success and the ticket to the middle class for the post-World War II generations, has slowly become the new high school diploma."

Moving forward to the future, Selingo talks about the forces that are and will continue to change higher education. Schools are in debt, state funds to colleges have been cut, and fewer families are willing to pay skyrocketing prices. Such developments will force schools to deliver their product in increasingly different ways, such as providing more online courses.

This is a compelling look at higher education. Selingo is critical, but he's also encouraging.

I'll be hosting a live online discussion about "College (Un)bound" at 9 a.m. Aug. 8 at washingtonpost.com/discussions. Selingo will join me to answer your questions. Every month, I randomly select readers to receive a copy of the featured book, which is donated by the publisher. For a chance to win a copy of this month's selection, send an email to colorofmoney@washpost.com with your name and address.

Contact Michelle Singletary, a personal finance columnist at The Washington Post, at singletarym@washpost.com.